Dovish Fed comments lead to stock rally, says Axel Rudolph, Senior Market Analyst at online trading platform IG.
Stocks rally on dovish Fed comments
“Dovish Fed comments that the recent run-up in yields might reduce the need for further rate hikes lowered expectations of another rate rise and led to a stock market rally. In Japan the Nikkei 225 rallied by close to 2.5% and most European stock indices by over 1.5% with US markets following suit as yields retreat."
IMF marginally lowers global growth forecasts for 2024
“The IMF world economic outlook kept its 2023 forecast unchanged but revised its 2024 forecast marginally lower. The UK and Germany saw sizeable downward revisions whereas the US and Japan did better despite global inflation expectations being slightly revised upwards for 2024.
Due to colder weather forecasts and suppliers worrying about increased demand the natural gas price shot up to a six-month high in Europe and a ten-month high in the US. The US dollar basket is on track for its fifth straight day of falls, following eleven straight weeks of gains before coming off last week while the gold and oil price are little changed for the day ahead of this week's US inflation data and as the situation in the Middle East remains precarious."
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